All unit trust funds are listed at Net Asset Value (NAV), after all cost and expenses including annual fees are deducted.

Alternatively you can consider periodically investing some cash into equity fund/s instead if lump sum investment. But would need some homework to carefully select the the fund/s.

copied

https://www.investopedia.com/terms/d/distribution.asp

Unit Trust fund distributions consist of net capital gains made from the profitable sale of portfolio assets, along with dividend income and interest earned by those assets.

Let’s take an example:

You own 4000 units of a unit trust. On May 31st, before a distribution, the unit trust is valued at RM0.27 per unit. So, the total value of your investment is RM1,080.

Let say i distribution of RM0.01 per unit. So, you receive a distribution payment of RM40 (RM0.01 per unit multiplied by 4000 units owned).


A new unit price after distribution: In this case, RM0.27 – RM0.01 = RM0.26. Thus, the new unit price is RM0.26 per unit.

Next, we can calculate the number of units that distribution amount of RM40 would purchase at the new unit price, i.e., RM40 divided by RM0.26 per unit = 153.846 units. You can opt either to reinvest the units or redeem it for cash.

Before distribution
Number of units 4000 units
Unit price RM0.27
Value of investment RM1,080


After distribution (you choose to reinvest the distribution)
Number of units 4153.846 units
Unit price RM0.26
Value of investment RM1,080

However, if you choose to redeem it, you will receive a cheque or bank-in RM40. Your account will still have 4000 units, but at the new unit price of RM0.26, and your investment would now be valued at RM1040.

This post has been edited by Cyclopes: Apr 19 2020, 09:49 AM

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This post has been edited by Cyclopes: Jan 27 2021, 11:29 PM